Purchase Price Allocations
Purchase price allocation assigns the purchase price of an acquisition across the acquired assets and liabilities, with any remaining value beyond their fair worth recorded as goodwill.
A purchase price allocation is a method of allocating a purchase price over the acquired assets and liabilities. The difference between the value of the assets and liabilities and the total purchase price is designated as goodwill.
MRV Consulting possesses decades of experience assisting companies with their due diligence (pre-acquisition) and announced (post-acquisition) processes.
We can provide you with a purchase price allocation per Accounting Standards Codification (ASC), including ASC 805 and ASC 820, Business Combinations, and International Financial Reporting Standard (IFRS). Our valuation team has over 150 years of experience and extensive know-how to value tangible equipment, fixed assets, real estate, financial instruments, intangible assets, and contingent considerations.
Our analyses help companies and investors understand what ongoing earnings per share will look like (dilutive or accretive) due to the acquisition. Further, our analyses assist management in better understanding each asset of the target business.
Understanding Purchase Price Allocation
When a business acquisition closes, every dollar of the purchase price needs a home. MRV Consulting brings decades of due diligence and post-acquisition experience to help you allocate that price accurately and defensibly, ensuring compliance with ASC 805, ASC 820, and IFRS standards while giving you a clear picture of how the deal impacts earnings and asset value going forward.